Green energy drive ‘must be funded privately’

The president of the EU’s long-term lending institution has warned that the bulk of the funding for renewable energy projects must come from the private sector.

According to Reuters, Werner Hoyer – head of the European Investment Bank – recently told the Handelsblatt renewable energy conference that EU bodies needed to step up their efforts to attract private financial backing for green energy schemes.

“If we want to switch to renewables in Europe on a permanent basis, the lion's share [of investment] needs to come from the private sector,” said Mr Hoyer. “Europe's ability to reach its energy and climate targets will decide whether or not it can assert itself in a globalised market.”

Mr Hoyer acknowledged that funding requirements for renewable energy were “beyond all imagination”, with investor confidence currently wracked by the ongoing financial crisis. Germany aims to abandon nuclear power altogether by 2022, adding to the demand for green power.

It was revealed last week that former shadow Welsh secretary and Labour MP Peter Hain had held talks with prime minister David Cameron over the planned £30bn Severn barrage project.